October 20, 1997
Dear Shareholder:
IMPORTANT ANNOUNCEMENT
In a continuing effort to provide one stop shopping to our shareholders
we are pleased to announce that we can now offer a family of equity funds to
our shareholders. Dupree & Company, Inc., the Fund’s investment advisor, has
entered into an alliance with Fifth Third Bank which makes it possible for
our shareholders to invest in equity mutual funds. By investing through Dupree
& Company, Inc., the Fountain Square Funds which are managed by Fifth
Third equity managers, can be purchased with no-load, no 12b-1 fees, and no
added transaction expense. We will continue to handle all of your shareholder
statements and account servicing needs just as we have done for your Dupree
Fund account(s). To compensate us for these services, Fifth Third will share
up to 25 basis points of their usual management fee with Dupree. Fifth Third
Bank will continue to be responsible for the portfolio management of the
Fountain Square Funds.
The Fountain Square equity funds we will offer are:
Total Return, September 30, 19971
Fund2 1 yr. 5 yrs. 10 yrs.
Quality Growth Fund 38.84% 17.02% 13.75%
Mid Cap Fund 38.18% 16.60% 14.31%
Equity Income Fund 35.26% 14.54% 11.82%
Balanced Fund 28.62% 12.91% 13.41%
International Equity Fund 15.97% 8.42%(since inception - 8/18/94)
The Fountain Square Money Market fund we will offer is:
Fund3 7 day Yield, September 30, 1997
U.S. Treasury Obligations Fund 5.24%4
Any of Dupree’s several registered representatives can discuss your investment
objectives to help you invest in a suitable fund or funds. To avoid conflicts
of interest, none of our representatives are on commission, they are all
salaried. You may call us at 800 866-0614. If you will inform us of your
interest in any of the above funds, we will forward a prospectus immediately.
Yours truly,
Dupree Mutual Funds
Thomas P. Dupree, Sr.
President
1 Past performance is not a guarantee of future investment results. Share
price and investment returns will vary and you may have a gain or loss
when you sell shares.
2 The quoted performance of these funds ("Mutual Funds") includes performance
of certain collective trust funds ("Commingled") accounts advised by Fifth
Third Bank, for periods dating back to 1/1/83 for the Equity Income Fund and
prior to its commencement of operations on 1/27/97; for periods dating back
to 1/1/83 for the Balanced Fund and the Quality Growth Fund, and prior to
their commencement of operations on 11/20/92; for periods dating back to
1/1/85 and 1/1/86 for the Mid Cap Fund, and prior to its commencement of
operations on 11/20/92; as adjusted to reflect the expenses associated with
the Mutual Funds. The Balanced Fund includes the weighted historic performance
of two Commingled accounts, (the Common Stock and Fixed Income Funds for
Employee Benefit Plans), at a ratio of 65% of (the Common Stock Fund for
Employee Benefit Plans) and 35% of (the Fixed Income Fund for Employee Benefit
Plans). The Balanced Fund may vary its investment in equity and fixed income
securities as described in the prospectus. The Commingled accounts were not
registered with the Securities and Exchange Commission and, therefore, were
not subject to the investment restrictions opposed by law on registered mutual
funds. If the Commingled accounts had been registered, their performance may
have been adversely affected.
3 Money Market Funds seek to maintain a stable net asset value of $1.00 per
share; however, there is no assurance that they will be able to do so. An
investment in the Fund is neither insured nor guaranteed by the U.S. Government.
4 A portion of the fees were waived. Yield would have been 5.10% had the waivers
not been in effect.
Please read the prospectus carefully before investing or sending money. The
prospectus contains more detailed information including expenses.
|